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Ray Kroc

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Ray Kroc
Ray Kroc-345px
Ray Kroc
Vital Information
Gender: Male
Nationality American
Ethnicity Caucasian
Birthname Raymond Albert Kroc
Born: (1902-10-05)October 5, 1902
Birthplace: Oak Park, Illinois, U.S.
Died: January 14, 1984(1984-01-14) (aged 81)
Deathplace: San Diego, California, U.S.
Alma Mater: N/A
Career information
Career/
occupation:
Salesman/Predominant establisher and first CEO of the McDonald's Corporation
Years/
Active:
1922-1984, his death
Appeared in/
Involved with:
McDonalds Corp.

"The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it."

- Ray Kroc, McDonald's Corporation founder and former CEO

Ray Arthur Kroc (born October 5, 1902-died January 14, 1984) who joined McDonald's in 1954 as a franchise agent, would build it into one of the most successful fast food operations in the world. He subsequently purchased the chain from the McDonald brothers, Richard and Maurice, and oversaw its worldwide growth.[1] Kroc was included in Time 100: The Most Important People of the Century, and amassed a fortune during his lifetime. He also owned the San Diego Padres MLB team of the National League (NL), from 1974 until his death in 1984.[2][3][4] Similar to another fast-food giant, KFC founder Harland Sanders, Kroc's success came late in life when he was past his 50th birthday. 

Kroc purchsed McDonald's from the McDonald brothers outright in 1961 for $2.7 million

Early life/careers

Ray Kroc was born in Oak Park, IL, a Chicago suburb. His father originated from the village Břasy near Plzeň, Bohemia (now the Czech Republic).

In 1917, at the age of fifteen, Kroc lied about his age and was accepted by the Red Cross to serve as an ambulance driver in the First World War, a position for which he trained alongside Walt Disney, with whom he worked in the same regiment as [5] [6][7] At one time, Ray worked for room and board at one of Ray Dambaugh's restaurants in the Midwestern United States to learn the restaurant business.

Between the end of WWI and the early 1950s, Ray tried his hand at a number of various trades, including a highly successful stretch as a Lily paper cup salesman, pianist, jazz musician, band member and radio DJ at Oak Park radio station WGES. He eventually parlayed part of the windfall from the income he earned selling Lily paper cups into an even more lucrative career as a multi-mixer milkshake machine salesman, traveling across the country, beginning during WWII.

Involvement with McDonald's

In 1954, Kroc was the owner of a company that provided restaurants with machines for making milkshakes. When he received an order from the founders of McDonald's, brothers Richard "Dick" and Maurice "Mac" McDonald for eight machines, it left him curious, for up until that time, the most that had been ordered at a time had been one multimixer, as the age of the "soda jerk", getting milkshakes and sodas at luncheonette counters and drugstore chains, which had been so popular up until the late 1940's, and had been the bulk of Ray's business, had been on the decline. albeit rather slowly, but steadily since the end of WWII. Somewhat perplexed at the McDonald brothers orders, but still intrigued, Kroc decided to venture to San Bernadino to visit the McDonald brothers's restaurant operation in person.

Kroc was immediately impressed with the cleanliness of the establishment and with the speed with which customers were served. He saw that the business had great potential.

Convinced that the setup of this small chain had the potential to explode across the nation, Ray offered his services to the McDonald brothers who were looking for a new franchising agent following the departure of agent Bill Tansey due to health issues.

A deal was then struck between Ray and the McDonald brothers which permitted Kroc to sell franchises. In 1955, Kroc founded "McDonald's Systems Inc." (later renamed "McDonald's Corporation") and opened the first franchise store in Des Plaines, Illinois. Kroc called this store, "McDonald's #1", somewhat confusingly because the McDonald brothers had already opened eight restaurants of their own before Kroc became involved in the business.

Kroc, who would remain active in Des Plaines for the rest of his life, would frequently phone the manager of his fiagship store across the street to remind him to clean his restaurant properly. The Des Plaines location boomed, raking in hundreds of dollars on its opening day. Ray franchised out scores of restaurants to eager franchisees. The brothers were satisfied with the money they had, though, and did not feel a pressing need to expand their empire.

By 1960 there were 228 McDonald's franchises in the country. But to expand as he dreamed, Ray needed fiscal experience and contacts in banking. He got both by bringing in a partner, former Tastee-Freez executive Harry Sonneborn, who worked out a lucrative plan for the parent corporation to lease restaurant sites as well as sell franchises

Kroc eventually became increasingly frustrated with the brothers' desire to maintain only a small number of restaurants. In 1961, he bought the company for $2.7 million (enough to pay each brother $1 million each after taxes). (When negotiating the contract the McDonald brothers said that 2% sounded greedy; 1.9% was more attractive.)

By 1972 Kroc was wealthy enough to celebrate his 70th birthday by giving more than $7.5 million to charity, part of it to his own Kroc Foundation, which supports research in diabetes, arthritis and multiple sclerosis. The philanthropic endeavor, which he launched with wife Joan, was dear to his heart, as Kroc himself became afflicted with diabetes and arthritis in his later years, and his only sister with MS. Then in 1973, he resigned from his post as corporation's CEO, handing the job to Fred Turner, who had worked as a cook in Kroc's first McDonald's franchise and had been named president in 1968. Turner had also helped Kroc launch Hamburger University in 1961, which now serves as a training ground for McDonalds restaurant employees.

As CEO of the McDonald's Corporation, Kroc amassed a fortune of 500 million dollars. He was named by Time magazine as one of the "100 Most Influential People" in the category, "Titans of Industry".

Personal life

Kroc was married three times, first marrying his high school sweetheart, Ethel Fleming, in 1922; the couple divorced in 1961, upon his accquisition of the McDonalds Corp. His second marriage was to Jane Dobbins Green (1963-68), a secretary, which also ended in divorce. His third marriage, to the former Joan Mansfield Smith, a recently divorced ex-wife of one of his early franchisees, Rowland F. Smith, a WWII Navy veteran, was on March 8, 1969.  

Death and tributes

Kroc died of heart failure at an hospital in San Diego, California on 14 January, 1984 at age 81.[8] Upon his passing, his wife Joan inherited his fortune, was estimated at $500 million. By the time of Kroc's death, McDonald's had 7,500 locations in 31 countries and was worth $8 billion. His wife Joan also inherited ownership of the San Diego Padres MLB team, on the team jerseys, his initials, "RAK" were emblazoned on the left sleeve of the jersey that year, as the team then went on to win the National League Pennant in 1984, losing to the Detroit Tigers in that year's World Series. Joan, who carried on husband Ray's legacy of philanthropy, in contributing to many charitable causes herself, died in October 2013 of brain cancer. [9]

Ray Kroc would be portrayed by actor Michael Keaton in the 2016 film The Founder. Critics praised Keaton's performance for his portrayal of Kroc.

References

  1. "McDonald's History". Aboutmcdonalds.com. http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html. Retrieved July 23, 2011. 
  2. Gross, Daniel (1996). "Ray Kroc, McDonald's, and the Fast-Food Industry". In Daniel Gross (PDF). FORBES GREATEST BUSINESS STORIES OF ALL TIME. Wiley. pp. 177–192. ISBN 0-471-14314-6. LCCN 96034245. http://www.wiley.com/legacy/products/subject/business/forbes/kroc.pdf. Retrieved 2011-06-13. 
  3. "Ray Kroc". nndb.com. http://www.nndb.com/people/315/000024243/. Retrieved 2008-10-12. 
  4. "TIME 100 Persons Of The Century". Time magazine. June 14, 1999. http://www.time.com/time/magazine/article/0,9171,991227,00.html. Retrieved 2011-06-13. 
  5. [[1] "Raymond Albert Kroc"] (fee, via FCPL). Gale Encyclopedia of U.S. Economic History. Detroit: Gale Biography In Context. 1999. ISBN 1-66700-010-9. Gale Document Number: GALE. [2]. Retrieved 12 June 2011. 
  6. Pepin, Jacques (7 December 1998). "Burger Meister RAY KROC". TIME Magazine. Archived from the original on 4 September 2012. http://www.time.com/time/magazine/article/0,9171,989785-1,00.html. 
  7. Kroc, Ray; Anderson, Robert (1992). Grinding it out: the making of McDonald's. Macmillan. ISBN 978-0-312-92987-9. http://books.google.com/books/about/Grinding_it_out.html?id=ZavI5VI33CkC. 
  8. "McDonald's controverial Padres Ray Kroc dies". Mohave (CA) Daily Miner. 15 January 1984. http://news.google.com/newspapers?nid=943&dat=19840115&id=aS5QAAAAIBAJ&sjid=tFYDAAAAIBAJ&pg=7019,1308812. Retrieved 9 August 2014. 
  9. Grace, Francine (13 October 2013). "Joan Kroc dies of Brain Cancer". CBS News.com. http://www.cbsnews.com/news/joan-kroc-dies-of-brain-cancer/. Retrieved 9 August 2014. 

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